The government has announced several budget proposals in the past, some of which have proven to be assets while the others have paved the way for disappointment.
Here’s a short throwback to the budget plans from the year 2010 to the pandemic stricken 2020.
The Budget Scenario in 2010-2011
These were the days of the global financial crisis. The tax rates increased, ‘Financial Stability and Development Council’ was established, and the goal was to revert to 9% growth.
The Budget Scenario in 2011-2012
Talks were on to increase the share of manufacturing in GDP from 16 to 25% and designing a sound Manufacturing Policy. However, this goal remained a far off shot and still is unachieved.
The Budget Scenario in 2012-2013
The Government introduced the controversial General Anti Avoidance Rules (GAAR). They even expanded tax on services to get additional revenue of 18,660 crores, and presented new projects for direct transfer for LPG subsidiaries, Kerosene, and Fertilizers started. This plan was a huge success.
The Budget Scenario in 2013-2014
To attract high investments, P Chidambaram announced the new investment allowance and introduced Inflation-Indexed Bonds both of which failed to impress. The Bharatiya Mahila Bank with an Rs. 1,000 crore capital was started but later merged with SBI in 2017.
The Budget Scenario in 2014-2015
The new finance minister, Arun Jaitley, showed a keen focus on Fiscal prudence and relaxed the FDI Limits, increased the capital on foreign investment in Insurance and defence to 49%. The sales of Government bank shares to ordinary citizens were also encouraged. The Government’s hold on PSU banks took a soar up since then.
The Budget Scenario in 2015-2016
The MUDRA Bank announced Rs. 20,000 crore capital, but the rate of unproductive loans increased to about 6%, making everyone question the bank’s apparent success. 5 ultra mega power projects (UMPPs) were discussed but never started. The Government gave its word to reduce the corporate tax rate to 25%, which was achieved by 2019.
The Budget Scenario in 2016-2018
The council of six efficient members handled the monetary policy and discussed the new Comprehensive code on Resolution of Financial Firms; this was again a point of controversy. The LIC led Credit Enhancement Fund came into the picture, and it was also told that RBI would actively push large firms to fund through the debt markets. The RBI made efforts to encourage borrowers to reach debt markets, but the investors weren’t many.
During 2017 and 2018, the Electoral Bonds created quite a stir, and the top is under Supreme Court’s scrutiny.
The Budget Scenario in 2018-2020
Health Scheme, launched Ayushman Bharat, involving 10 crore families and providing each family about five lakhs rupees for secondary and tertiary hospital care. 78 lakh medical admissions were sanctioned, enrolled in 21,259 hospitals. However, the monetary funds for this scheme was a significant concern.
The government introduced a capital gains tax for the stock market at the rate of 10%, and this applied to mutual funds.
In 2020, the PM Kisan scheme was launched, sending Rs 2,000 to farmers. Talks are on about the Currency Sovereign Bond, but it hasn’t seen the light of the day yet.